ChartWatchers Newsletter logo

July 2006

ChartWatchers

SPLIT MARKET

by Chip Anderson

While both the S&P 500 and Nasdaq 100 are showing the effects of the current correction, there are significant differences in the technical picture on both charts. With the S&P 500 we might ask, "Where's the bear?" The 50-EMA of price is still above the 200-EMA, and most important, price still remains within the nearly three-year rising trend channel. The most negative thing about price action is that this correction is currently making a second retest of the rising trend line, something that didn't happen on the three previous bull market corrections. Unless things change for the Read More 

ChartWatchers

A MOVE DOWN FOR THE SOX?

by Chip Anderson

We believe that the Semiconductor Index (SOX) is poised to move sharply lower in the months ahead into a tradable bottom. Our target is rising trendline support near 280, which presupposes a decline of -31% between now and then. Our reasoning is rather simple: First, the fundamental backdrop has been, and will continue to deteriorate in the months ahead as the Fed's previous interest rate increases come to bear. This suggests the news flow will not be positive for semiconductor stocks i.e. Advanced Micro Devices (AMD) warned on revenues and earnings recently. Secondly, the technical Read More 

ChartWatchers

5 YEARS WITHOUT A PRICE INCREASE

by Chip Anderson

FIVE YEARS WITHOUT A PRICE INCREASE! - StockCharts.com introduced our "Extra" service five years ago and our price then was the same as it is now. StockCharts is still a great value folks. And - for you cynics out there - we have absolutely no plans to raise prices in the foreseeable future. Hopefully, everyone got a chance to take advantage of our summer special (it ended last week), but even if you missed it, you are still getting a great deal. MONOPOLIES IN THE REAL WORLD - Unfortanately, not everyone in the financial world works the same way we do. In case you didn't know, the world Read More 

ChartWatchers

S&P 500 TESTS MAJOR UP TRENDLINE

by Chip Anderson

Earlier in the week I showed a number of moving averages that appeared to be on the verge of giving major sell signals. Here's another long-term support line to watch. The S&P 500 is bearing down on a two-year support line that starts in the summer of 2004. A break of that important support line would signal a drop to last October's low at 1168. That would be the first double digit percentage loss since the bull market started more than three years ago. I think the odds are pretty good that it's going to happen. The weekly MACD lines have been bearish for the last two months. This Read More 

ChartWatchers

HELLO FELLOW CHARTWATCHERS!

by Chip Anderson

Three big down days have sent the Dow back down to the 10,700 support level. What's that you say? 10,700 is just a number? Just a number like any other? Oh really? Check out this chart: 10,700 is a number that should make your ears perk up. If the current Mid-East problems push the Dow well below 10,700, it will mark a significant change in the market's technical picture. - Chip Anderson Read More